Facing certain rejection by the Louisiana House Ways and Means Committee, the legislative sponsor of Governor Edwards' proposed new tax on businesses, asked the panel Tuesday to defer action on the measure, effectively killing the proposal.
The commercial activity tax was a key part of the Governor's tax reform plan and it faced strong opposition from business leaders and Republicans.
Edwards is now calling on leaders in the House "to step up and offer solutions" to the state's revenue problems. $1.3 billion in temporary state taxes will expire in mid-2018.
The chairman of the state's Republican party, Roger Villere, called it "a great day for the taxpayers of Louisiana."
"I commend the Republican members of the House Ways and Means Committee for standing up against the governor and his tax and spend agenda. Governor Edwards ran on not raising taxes. I'm glad Republicans are helping him keep his word," Villere said in a statement.